Last Updated: Jan 23, 2024 Value Broking 7 Mins 3.0K

Returns and risk are closely connected. The returns will be more significant and the riskier the investment, respectively. Therefore, you should constantly consider your risk profile while selecting investing alternatives. By clearly understanding your risk profile, you may choose safe investments with high returns that fit your risk profile. In other words, low-risk investments could not provide you with the kind of profits you might anticipate if you take on a lot of risks. 

While highly variable assets will make a low-risk investor’s life uneasy. The changes in the market will constantly cause them to worry. Therefore, the first step in creating a sound financial strategy is frequently determining your degree of risk tolerance. The safe investments in India with high returns are listed below:

1. Fixed Deposits (FDs)

Fixed Deposits are a well-known and well-liked investment strategy many Indian investors adopt. You may invest your extra money for a specific time and receive consistent returns, which banks and NBFCs often offer. 

Features and Advantages

Due to the set returns guaranteed by the bank or NBFC, FDs are a popular choice for conventional investors looking to save money. The investment term and dividend frequency may be customized, making FDs a reasonably flexible financial tool. 

The earnings from FDs may be utilized as a constant income to handle normal living expenditures by choosing a monthly or quarterly distribution. It is a practical and advantageous retirement planning method because most businesses give an additional interest rate for elderly persons.


While precise eligibility requirements may vary; generally, any Indian citizen over 18 can invest in an FD with the necessary documents, such as a PAN card, an Aadhar card, and other forms of identification and address evidence. NRIs can invest in FDs, although often only in certain kinds.

2. The Public Provident Fund (PPF)

A long-term investment method called the Public Provident Fund allows you to grow your money while steadily taking on a little risk. The Indian government supports it, and is mainly utilized as a retirement planning tool.

Features and Benefits

The PPF offers tax savings to supplement its consistent rates to combat general inflation. The money deposited each month is tax-deductible up to Rs. 1.5 lakh per year, and the interest received is not taxed. 

Additionally, it permits partial withdrawals, and you can borrow up to 25% of the value of your PPF, with repayment due in three years. PPF accounts must be maintained for at least 15 years, and Rs. 500 must be contributed annually to keep the account open.


All Indian citizens over 18 with the required identification documents, such as a PAN card, an Aadhar card, and other forms of identification and address evidence, are eligible to register a PPF account. One PPF account may only be held by one individual.

3. ULIP: Unit Linked Insurance Plan

A dual-purpose insurance plan, as its name indicates, is a ULIP. In addition to offering life insurance, these plans make market investments to provide more significant returns.

Features and Benefits:

You purchase two items when you pay the premium for a ULIP. Your life insurance premium is partly paid; the remaining sum is put into equity, debt, or hybrid funds. Benefits include the ability to pick the level of life insurance and the freedom to invest in various funds. Sec. 80C also permits the payment of a premium of Rs. 1.5 lakh annually.


Indian nationals can purchase a ULIP 18 with the necessary identification, such as a PAN card, an Aadhar card, and other evidence of identity and residency.

4. POMIS, or Post Office Monthly Income Scheme

The Indian Postal Service is the only provider of the investment program POMIS. It is a fixed-income monthly plan with moderate risks and returns that are assured but not excessive.

Features and Benefits

The maturity duration for POMIS is five years. After a year, the money can be withdrawn at any time with a 1-2% early withdrawal fee. After five years, money may be reinvested. The returns are taxable even if there isn’t any TDS. One person may have many POMIS accounts, and switching to any other post office is simple and cost-free.


A POMIS account can be opened by any Indian citizen over the age of 18 who has the required identification, such as a PAN card, an Aadhar card, and other forms of proof of identity and residency. Minors 10 and older may establish accounts on their behalf. NRIs cannot open accounts.

5. SCSS, or Senior Citizen Savings Scheme

The Senior Citizen Savings Scheme is a type of investment instrument created specifically for Indian citizens over 60. They have a low-risk factor and are ideally suited to achieving medium-term goals.

Features and Benefits

SCSS has a five-year maturity period with the possibility of an additional three years. Only deposits up to Rs. 15 lakhs are permitted in this account. Premature withdrawal is permitted. However, there is a 1.5% fee attached to it. Tax deductions are available for deposits up to Rs. 1.5 lakh annually.


Open an SCSS account if you are an Indian citizen above 60 or between the ages of 55 and 60 who have retired on superannuation. NRIs and HUFs are not included in this program.

6. NPS, or the National Pension System

Regardless of whether a person works in the public or private sector or is self-employed, the government has created NPS to encourage good retirement preparation by all people. Similar to a social security retirement plan overseen by the Pension Fund Regulatory and Development Authority (PFRDA).

Features and Benefits

NPS offers two different types of accounts. Tier I is a main account with tax benefits, withdrawal limitations, and other T&C. Tier II is more liquid, has no limitations on deposits or withdrawals, and provides very little in the way of tax advantages.2. The NPS is referred to as an EEE (Exempt-Exempt-Exempt) plan since the deposit, returns received, and maturity value are all tax-exempt.


Any Indian citizen between 18 and 65 (as well as NRIs) may register an NPS account.

7. PMVVY, or Pradhan Mantri Vaya Vandana Yojana

For older persons, the government offers the PMVVY subsidized pension program. LIC ultimately manages it. You have until the end of March 2023 to acquire this 10-year plan.

Features and Benefits

Under this arrangement, you can select your preferred deposit method and pension payout frequency. Both maturity and death benefits are provided. In addition to receiving tax advantages for the paid premium under Section 80C, you can borrow up to 75% of the insurance cost.


There is no upper age restriction for PMVVY, which is solely available to elderly residents in India over 60.

8. The Atal Pension Yojana (APY)

The Government of India’s Atal Pension Yojana is a pension fund program that gives elderly individuals guaranteed pensions based on their payments to the fund.

Features and Benefits

Senior persons might get a pension through this program ranging from Rs. 1000 to 5000 monthly. The government contributes equally to the lesser of Rs. 1000 annually or 50% of the subscriber’s payment.


APY is open to all Indian nationals between 18 and 40.

Comparison of Top Safe and Return Investments In India

  Investment TypeSafety LevelReturn PotentialExamples
Fixed DepositsHighPPF offered by the governmentBank FDs, Corporate FDs
Public Provident Fund (PPF)HighModeratePPF offered by the Government
Government BondsHighModerateSovereign Gold Bonds, RBI Savings Bonds
Mutual FundsModerate to HighModerate to HighEquity Mutual Funds, Debt Mutual Funds
Real EstateModerate to HighModerate to HighResidential or Commercial Properties
National Pension Scheme (NPS)HighModerate to HighNPS offered by the government
Gold InvestmentsModerate to HighModeratePhysical Gold, Gold ETFs, Sovereign Gold Bonds
Savings AccountHighLowBank Savings Accounts


A portfolio with the lowest risk and highest returns is the optimal portfolio. Finding the ideal balance often necessitates making some kind of sacrifice. Your savings account offers excellent relative certainty, but the profits it will provide are insufficient to increase your wealth truly.